Trip.com Group Limited (TCOM) 4 Mar 212020 Q4 Earnings call transcript

Thank you for standing by, and welcome to the Trip.com Group 2020 Q4 Earnings Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to Michelle Qi, Senior Director. Please go ahead.

you. Thank welcome XXXX and call. earnings Trip.com to morning, QX Group's conference Good

Executive Cindy me are Board; of Chief call on Ms. and James Sun, Joining the Chairman Mr. today Officer. Chief Wang, Financial Liang, Executive Jane Officer; Ms. the

will the During under Reform outlook and statements harbor Act Securities Litigation provision of of our performance, this discuss future are which call, forward-looking Private XXXX. we safe made the U.S.

risks inherent uncertainties. and Forward-looking statements involve

A number strategy As After updates, financial public business we will prepared the except today. and obligation Jane James, such, statements, and as call as forward-looking operating our quarter views are Group XXXX over uncertainties any our materially please. may filings XXXX. Trip.com update not does Cindy James, to for James. Securities will Group's potential performance a I from for session. different of required as share outlined of the results be the and the outlook quarter Exchange Trip.com of With turn well fourth under and Commission. any that, the Q&A law. will to undertake remarks, risks have expressed first in with highlights the applicable and

the Thank for Michelle. you Thank you, joining call us everyone on today.

at make partners. with opportunities. and us resilience innovate it our collaboration improve demonstrated with Despite Looking products, to pandemic, strengthening filled back have result a and XXXX, our to continued stronger was service our company. the challenges helped of both year a we negative impact This our as strong and

channel maintained all across market throughout domestic we a the as result, momentum a As gain lines, share further strong recovery year. product

market take to share global the prepared recovery. in fully are upcoming additional We

technology. of opportunities ambition and to with domestic the run. focus global At ahead our capabilities, the we supply same for and on quality in forward, terms recovery seeking international the Going we for product pushing time, innovation, chain, are content in long will markets continue travel

growth our in would shares to products but Today, a only the pandemic, not laid have efforts beyond latter. also shed during on new market I gained focused the Our drivers additional COVID. for light foundation some like solid

short-haul product best Therefore, our expand and product supply to the which the competence operation. are depth users we decades over chain offerings all, of of positioned of evolving First breadth core capture have to demand, is such our to built a and which is as incremental as the typical unique staycation experiences the for and already that's trips, and travel, bear alternatives goal outbound to the sites. in-depth started long-haul fruit. are This near-term

activities short-haul reservation strong winter. see year-over-year are achieved industry in growth fluctuations in-destination and to We glad despite travel past for the

Secondly, our we to can synergistic which in our the with bring are revenue core highly part come. strengthen working is meaningful sources capabilities, content years to business and hard

content We developing expect three-step in strategy to our roadmap. a follow

We content enrich and terms to users apps. continue we'll engagements formats. and First, comprehensive of collections the frequency improve of content help time our category spent believe offering and will on terms in new attract in

from Next, improve the content contents products. A that benefits and to growth. rates, integration our conversion we strengthen generation. loop recommendation will perform especially for cycle Effective to complete product the virtuous short-haul a transactions of sustained innovation

and for incremental leadership users, space. to Third, the revenue us compared in marketing but marketing. the enables upgrade our a a order in of end our Last peers technology service to further to network that our products industry and core serve not with capabilities, safeguard capability smooth products invest continue of competencies. And quality we and other and our user-base marketing continue travel extensive remain effortless and we'll delivery in to quality tourism leading to and and least, activities, advertising deep integration our content hub as promotion marketing opportunity branding, tourism and to our

travel particularly that China's one-stop opportunities. through With markets, Trip.com could travel Jane global looking Finally, I call multiple for international positioned attractive brand international growth by travel for presents of an markets, a operating partners audience beyond that we We be our for COVID, One truly domestic long-term a Group excited believe the platform. perspective. the that, remain potential marketing from will portfolio turn a is over to uniquely reach to highlights. global deeply

saw winter Thanks, fluctuations a year the James. in of start decline to outgrow XX%. industry year-over-year and Group would Trip.com delivered in the see like the with to a and Despite Total overview performance and average that full Good weaker the morning industry XXXX. to a everyone. revenue solid glad are in consistently narrowed QX I of quick we seasonality further lines. QX the QX, net across product

other reservation, accommodation domestic and QX. products business, travel ticketing domestic in nicely air transportation ground recovered As

addition, billion, In OTA non-GAAP in positive profit achieved full margin again the delivered core USDXX of fourth RMBXXX or XX% On a our GMV worldwide. year leading the quarter. we industry of brands basis, billion,

to improvement able first, were X% third, operating efficiency strength new in share of cost margin. penetration; year to categories; full highlights areas: operating I our like and four control, For in forth, end our second, improvements content travel strong market; profit city thanks XXXX, tier capabilities. a achieve would our Today, higher some mid-to-high non-GAAP frequency and to we low

fourth middle-to-high market to the competitiveness continue end we product market. our increase share especially improve quarter, in the First, in and

growth double-digit XX% industry Our by the exceeding average XX%. reached end to hotel year-over-year the bookings far middle-to-high

addition, grew outbound on has quality In an fourth niche become spending users. quarter, saw alternative high especially average and year-over-year customers. in tours our for previously package We an the travel for domestic significantly our important boutique mobile

important with and tier more products. products from share market become have whom to acquire Second, new new third of cities came customers XXXX channels below. we In tier users markets. cross-sell can gained Transportation low XX% other than our further we the in

over hard unlock our highly Third, diverse frequent high-quality short-haul as and We streams activity existing of staycation. James The with year. and attracted XX% platform mentioned, by in-destination last in of the year-over-year scope such of partners we collaboration worked the our categories number end by to expand our and partners. as our offerings new product more increased suppliers to also broaden and to

our for has quarter, the local Such hotel and year-over-year more space local activities travel our reservation the and XX% province XX% short-haul increased almost performance same a New same over recovery. year-over-year than and As XXX%. and Year reservation province same holiday. short-haul for to fourth by contributor travel become for extended key in tripled. local and the attraction into our to for the and activities achieved past space growth GMV hotel for strong increased the attractions a the Compared XXXX, Chinese period In result, GMV

we channels offering. will content content and information than generate the user year. as We believe to during than value focused total engagement the in content earnings Over our of well seems long-term, the new improving power. our past end that By the of the tripled unique year, long-lasting on the year of time to app more the XXXX, doubled more visit traffic beginning our and contributions compared as the

special and place channel to approximately livestream come which become now people find contributed year. during deals, deals where a X attractive have the GMV Our past billion

We opportunities. development advertisement revenue are in see glad also the initial to

our and In The our make ecosystem in an comprehensive revenue the overall Our and maintained build will content efforts. the significantly platform enable year. marketplace. growth with a continue and quarter to year-over-year the throughout future, positive increased concerted users’ domestic we engagement ecosystem will marketing fourth advertising our

resilient industry and year the due New small the the demand tightened XXXX, of to holiday. the domestic travel travel despite headwinds Chinese to remains Year restrictions Turning outbreaks during

Our XXXX. to domestic hotel and the in and the air rebounded recently, recovery holiday same post period compared reservation quickly reached full

to market the domestic and the the that confident with vaccines. growth is the will fully distribution world pandemic are effective cross-border travel the control in trajectory We XXXX, come pressure. of wide under due of back still Around year

to Tourism effective started Academy COVID-XX travel an under the recovery. order worldwide, in were its the Trip.com resumed However, vaccine increased of China domestic year. According new its global travel has distribution

prepared fully We international in are optimistic upcoming of recovery advantage travel. the and to take will be

I thank time. in during like our Finally, team quality and service this maintaining for dedicated again challenging their commitment would efforts to

and we leading are communities. best customers, always, the practice business our all shareholders, stakeholders, to including in committed partners, our industry As employees, for

which first in an providing approaches ESG and released and our Lastly, we work inclusive cover responsible our travel quality report, experience. place, promoting developing efforts user

efforts to turn long-term. the With our now I Going Cindy. to in growth over forward, will our call in lead that, to the continue sustainable ESG we'll improve

everyone. Thanks Jane. Thanks,

For from growth hotel the GMV early a XX%. the Reservations Year in positive Domestic base Trip.com decrease a destination quarter higher Chinese recovery some grew digits, highlights for for sustained business in to holiday. staycations. Group recovery period revenue the despite XXXX, bookings more same by maintained reservations of drives year domestic of QX, Accommodation inter-province previous air in achieved our in market, that New billion, domestic this RMBX than a under with activities end the with reported growth I'd transportation XXXX. at further of XX% hotel market for fluctuations fourth short-haul small representing to cases and net mainly outbreaks slower package by narrowed during reservations business domestic quarter, strong International Recovery mid-to-high for of still QX growing with China positive revenues. due industry go growth trips. first domestic driven our The is especially double quarter. the through product like revenue a in of continued for was COVID pressure. short-haul China domestic reflects decline in year-over-year

from Gross roles cost decreased XXXX, in gross in experienced period helped around operating change XX%. structure still increase hotel by also for and by of to In mid-to-long-term, and product increased same quarter gross strong expect be in China, XX% reservations in from mix previous same expenses XX% operating the markets. and expenses for the quarter, service quarter. the efficient period mainly for the XXXX, what we margin favorable the previous improvement management. margin XX% non-GAAP the for was by Trip.com, Total from XX% in XX% thanks was our to similar flexible increased However, brand, largely fourth XXXX and the our margin XX% of continued to The we in many efficiency. domestic to saw

streamlined lines. year, the operations our have we across business During past further

certain In addition to adjustments to COVID. related

quarter increased The cross-selling fourth efficiencies. from led marketing from marketing billion, the due Sales in demand mainly decreased The expenses response the improvement our on sequential was from previous RMBX.X addition, same to and the increased for the development same due fourth by personnel quarter in the previous our the normalization and increase billion mainly sequential to continue quarter. and RMBX.X by recovery. XXXX and the X% to the from decreased In Product the travel spending arrangement. content to period by marketing increased XX% by in for increase was to X% expenses XXXX quarter. further to of XX% period have

per earnings quarter US$X.XX ADS were was in operating the charges, the margin XXXX. to period of compared XXXX. for Excluding XX% XX% non-GAAP quarter share-based compensation fourth fourth Diluted or same the RMBX.XX of for in XXXX,

Excluding senior share-based of and the fair for US$X.XX ADS and were XXXX. exchangeable investments per of notes, compensation non-GAAP or fourth charges quarter earnings changes value equity security RMBX.XX diluted

As of time XXXX, or billion December cash balance XX, products US$X.X financial cash short-term equivalents, restricted investment, RMBXX.X the cash, deposit held billion. and to was maturity and of

turning due to during COVID-related significant quarter we Now of first James early, Year. in trends in of New booking the shared travel to variability restrictions as Chinese the mostly two XXXX, months the the saw first XXXX,

some today, recent Therefore, Our share visibility ongoing guidance a provide Instead, booking very limited of this pace window. time. is I'd short not volatility full and due our quarter recovery the will of color for the still to the full performance. the like quarter to on we as

XX% of have than In the intra our in performance in of general for reservations led seen And demand full air performance the average we've particular, We by confident in rebounded of activity industry first restrictions. first encouraged the trends by major at the to across hotel maintained travel hotel – increasingly ticketing quarter quickly on and hotel the that and QX, destination market achieved We on sustained province against more wide domestic XXXX. back growth. availability After our the a QX growth reopening the of with half lines. positive relaxation domestic reservations recovery of vaccines potential period of reservation around solid travel holiday, same the in recovery and of business better that same international is industry the the getting the recently compared travel, XXXX. the travel the period fully remain trajectory

line for the We recovery are that please and capturing domestically internationally. market opportunities share, prepared gaining operator, during the fully continue With the open to questions.

Thank comes Yao you. first J.P. Please go ahead. question from Instructions] Your Morgan. [Operator Alex from

management you, my Thank taking for question.

on remarks. exposure content have the compete prepared competition the you Can and as briefly more to travel bit strategy, a perspective, such against you So content question content established I do you. elaborate strategy, the a on platforms the Thank particularly James, with Xiaohongshu how more plan on talked strategy in your Douyin? to you from

Yes.

platform First, in the we are travel China. transaction largest

writing to transaction frictionless. are of travel importantly The many users and strong our capability allows So more platform. connection they make content and journals product authentic used conversion to easy and to reviews

our live channel year. example, the travel For conversion highest in last stream rate delivers industry

competency So value seatbelt users, golden for the be will shorter that for inspirations we platforms we these of for and reasons have travel in and long haul demand. the travel a one

you. Thank

from comes next Your question Jefferies. from Chong go Thomas Please ahead.

tier year. in the as strategy management tier Can Thanks on more is My question talks congratulations you. after the good the lower lower lower as for cities, taking cities. management this landscape Chinese Hi, trend Thank tier and New cities our questions my morning. well about about recovery in Year. pricing competitive in

Yes.

we utilizing the airports of platform. lots lower the tier For our fully cities, of are comprehensiveness putting

First of the low to offer sell our links all, our penetrate platform. the capability products cross into transportation further cross cities to tier our products and us sell enable all for us the

Secondly, thousands the have offline also of cities. only we products sell us in platform, stores, also to these the cities enable tier which we not online have lower

to input people And even penetrate hotel, We able certainly, into as activities these upcoming trend, transportation the stores will as in terms making the package pricing get well our different very to enable because they select local into products, align. we the product deal products, make well be best cities. more is of to when cities are sure further these offline to sure of competitive us including tours, also the products from the as product coverage, in

presents who the at cities And to these lower for have to people markets efforts et cetera, be our businesses. segments are as our look going for such specific retired, opportunities strengthened. Thank tier different we also special for is So new also you. teams

Thank you.

Ronald go comes from Your from Keung Please Goldman Sachs. next question ahead.

to overall Cindy Thank my I we kind you. competitive online see should industry. points percentage Jane, want that on James, follows about that the hotel, players guess the good be hear you more Thank XX the do And I question Michelle. booking see I and you, the about amongst very performance particularly the of given with mentioned industry. landscape, see. how online,

hotel, space. industry and amongst we plus ourselves for players penetration penetration now – within the the online hotel trend between how the including you. and online other do is doing maybe see online other for what for overall say online So our players, Thank ourselves associates versus [indiscernible] the within

hotel majority For the hotel booking the the offline. business, of still is

through concerted movement. player, by of more And are we lots there gaining with So the moving volumes are every shares this efforts online.

platform best the is one-stop using cities, in price offer XX% shopping interested our into mid everyone As In efforts platform we also of to high-end, our we cities. we sure discussed concerted comprehensive make share certainly, the lower from to a are lower penetrating are And by growth travel. from outpacing in industry gaining to market lower that tier, segment. also the tier to putting the we're tier who

these advantage the all the industry give So efforts leading us growth.

you. Thank

Thank you.

Wong from Please comes question ahead. go next HSBC. Binnie Your from

And of Hi, my your side. that the in management. good two and a market. one I to there One, stepping taking the right understand short follow-up the right. two you also some morning questions especially, landscape hotel the on subsidies, We like questions. question. Thank are for domestic have up – on competitive hotel is here peers even

– better get any Thank helpful, the of us see like also, guess like, right? step our our we of that when quarter? we step terms especially, and the and cross-selling see and you. how I will us terms metrics And cross-selling, be in of thought on up you there'll be then for that in for retention strategy you like marketing retention online do It of us user year. to terms very can our the sales also your the to also cross-selling in our able in with to fourth efforts, up share So terms understand subsidies, see also for trend that,

I consistent strategy Yes. the time think as explained, and also strategy is, to proven. With regard our quite is our Jane competition,

hotels, competitive launching of We our travel while allow strengthening high-end determining the service, room on during keep at the to only well We but hotel range price actual a pre-order a strengthened offerings, the locking also now our a focusing especially broader as in in very the develop date. flexibilities great which and our For offerings the attractive ineffective. not the core with enjoy our prices, pricing improved users in inventory as subsidy content, by competence have pandemic. collaborations partners

the launch a to partnership these marketing. market end tier against sale fresh and are with players. holidays targeted hotels hotels the mid our also confident all share the continue strategic almost China strengthening high major run significantly our short-haul will kind And These We help of to edge. efforts to to further channels very in leading some that like we – market. that extent, we Therefore, are increased

For be segment, targeted in competitiveness customers that was this hotels. and more sensitive. price tend end meet competitive acquire by will the end low we lower market in notice new did price users Therefore, continue the to to the we hotel,

inventory X third-party X closely with share this especially very bull appears cities tier in market the our partners, in work help and also We against tier segment. our to

of instead online. inserted existing a we bringing channel as serving sustainable and hotels is contribution end level limited great customers in local low our new run, Any business very focus as places, to on other has total group long this to our hotels demand profit. In impact as to as much proposition well paid from area demand net hotel competition have for value the incremental limited performance. revenue, more our As just the financial

XQ quick of margin because market just we about was side, structural high thank think also and And on have drivers, our in XQ margins the Okay. should margin, very positive the like I expect seasonality also Thank on follow-up you. we then side, you. good because XXXX the and if In investment. is

operating cost expenses their The decreased flexible year yield structure – total and operating non-GAAP to cost Yes. largely since around XX% efficient largely expensive and our a QX, in management.

year, in streamlined business of During to related have cross COVID. further past lines, we adjustments our addition certain to operation the

efficiency. In further addition, content and lift our our have cross-selling improvements, marketing

expenses marketing Q. Our deep non-GAAP in a increased now and sales

project, Looking forward improve cross growth reserve increase We believe our certain ecosystem the content help improvement develop for our will in total for in on stable, and how our But core largely we market. in will adjusted time, personnel short-term XXXX, budgets that strategy. in strategic did headcount while our our XXXX, international be discretional for expenses recovery the I long-term selling will continue the business we expect our strategic example, expect be driven prepare adapt and efficiency. at we the to – will same also recovery. And expenses and and accordance with and modest marketing largely the Sales and in are to businesses. content our to we especially marketing in potential

you. Thank

question Thank Oppenheimer. you. go Please Instructions] Your [Operator Kelly from Jed next from comes ahead.

questions. Good you taking for management. Thank morning my

a higher OTAs this case margins? you like with These lot picture, Just think are and for higher you? you. see out to Thank sort the margins. Do the can travel, pandemic you of come investor structurally looking of with big going of the companies you that's Do enthusiasm. from global emerge there's online

Yes.

long the XX% top the still very we margin. of As of moment in Compared efficient this. focus and year short-term, always we you. on the this of the think terms run players margin, terms XXXX achievable us sales at of and clear well original the to rates marketing terms help we we efficiencies, the in by is the gaining share peers app the is content in because margin although the as mobile we will as compared we leverage, because guidance users. we the to international and marketing But pandemic I still addition, continue product the improve XX% of own for we customers we provide sales probably most especially our I us. with as side. stickiness the Trip.com – as well the And in in cannot with volatility the will our especially very can probably think the for in explained, of markets, the line. also global this peers some significantly growing customer, QX, have especially think the because Therefore, on We on our long-term on noticed as focus Thank in conversion think, market

Great.

you. Thank

comes question ahead. go from next James Lee Mizuho. Your from Please

that any signs coming Jane, maybe for Great. that's hotel can we reestablishment Thanks as way we – possible right consider a of kind is of think the of have for the where green sense, when channel to talked a maybe do policy in pandemic beyond vaccine talk this now, look can for outbound earlier? for about help to And you industry we you Should also kind the about going restriction thinking what Just OTA curious us there. post available Thanks. they'll travel? widely the partners there you the understand of we as crisis? share financial OTAs? taking support look up in what the my in should the the those we U.S. saw that question. or Certainly you're some gained travel year? lifting as And government in signs countries Asian on market more rely trends general,

Thanks, James.

couple answers a in layers. the of illustrate me Let

for small season First timeframe, January of the outbreaks winter during and all, travel, of were the virus. during the domestic February there

for domestic more were put whole there's country, very outbreaks. good content quickly New So travel. Year, there And the after we stay have for Chinese we recovery seen the

Chinese Chinese this generation, of travel. investment, we And we rebound is in year. strong content very have domestic will capability, in positive prepared very in technology are service our team the travel our expect a so for terms recovery well So domestic the very for

of to and a couple Secondarily, things more like is being would with see. adopted vaccine countries, we there by were more the

of medical how when country, for world, they of to taken to do in long enter form across or when if – quarantined into be – return have who all, taken the terms need consensus vaccines, to people need for they their a country any. medicines the home another they First experts they

policy by Secondly, terms countries, technology, the the strong global will services medical the green cross-borders as information and ready, well experts, special make with totally, policy investment country opening of in country travelers. the supporting of make with the our as with in lanes, once sure all sure their up up well consensus has we a across. opening they OTAs in-force policies the every every service built form country. channels when will is And the capability coupled for their customers And is every by go very information of

our information team in technology capability to terms assimilation, investment of customers. the of terms support So right making is in our the

recovery Japan, into very have the we among Asia travel looking virus very secondarily, leading control all believe continents, most And in abilities countries, Now players. different many so China the have the Singapore, their is as virus, the done such well also Korea global domestic nations well, well. in demonstrated countries to controlled the

these So test recovery travel in with domestic And the cross-border see to vaccine, of very able countries water limited that recovery of the be the as hopeful we'll well. effectiveness for lanes, will green the kind in of leading some the we expect Thank in you. transactions. we're recover

you. Thank

from go International. Wu Natalie Please Haitong Your ahead. comes question from next

Thanks morning. question. taking for good Hi, my

and any get rough with will if the criteria plan marketing And full different relate us and sense sales of MAU there's I a that across time first of to want it a have in user or will is year domestic that last how given New to the marketing – I if much of business update of follow observed propelled spending, a be of the channels question. of during app wonder Chinese and grateful I in recovery how Thank that cohorts posted can sales tightening change your the your Year. newly acquired, an if Also Just first half year discussion to give this and marketing demographic you loosening any features wondering, you. great? be and pandemic? you up

our our that noticed well rate. to – us well in And has as marketing content moving make the as improving. live continuously to and is and significantly The for the are sales, as the marketing tightening marketing example the or on and hopefully fresh into sales threshold, we the, largely and our marketing helped did us our been the year, for we as budget starting XXXX, Thank consistent, improved. based the And expenses will ROI as were criteria pretty streaming including you, content conversion we our Natalie. return. based monitor on returns purely from investment product swiftly will Therefore improve ROI content continually starting overall we adjusted we sales our the and not – but to efficiencies continuously our efficiencies loosening will our explained discretional last

second Sorry. What's your question?

time demographic how your newly like or firstly, MAU there's cohort you just if with And an users, update about also wondering And if last new new user? MAU, it's can app user? those feature the new any first is then acquired give much About that us – of a related of your app user year?

Yes.

quite increasing, app. our – of app see our Our users with MAU more the been has and stickiness noticed did content we the We significantly. increased timing – did consistently especially more in

provide the as that the not fourth, would the especially cities. but that on at app today time They may first cities, In users, from well coming at if from we the users at five the make tier notice lower time, booking more coming content our terms third, of we'll did and looking as beginning. the spend some new more tier of percentage new

you. Got Thank it.

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you. Thank

next Your comes Morgan go from from Alex Stanley. Please ahead. question Poon

advertising, opportunities for revenue out related is post-COVID question world, My want many and content And to many user how management cross hauls, short actually my mentioned actually new a paying talk you taking you high drive the In about penetration. COVID. attraction, tier this up like also the content Thanks particularly things, long-term the other coming marketing, city, efficient question. overall online can conversion understand low mainly conversion. I strategies of to local selling, strategy new vacation, things,

domestic understand So, overall the of we these go basis, as you trying international quantify out should we on opportunities Thank the marketing, all just COVID? how revenue also much very much. new not to – opportunities, how

Yes.

I of space money new us. a only for most think We traditionally this commission. wasted from is our

really and hotels. it's the budgets of out sales airlines, coming So of destinations,

just budget budgets. magnitude, order know, a marketing Of just probably as course, as large and as and same have we and of branding budget, they a also large the sales

So able area our we our capability that into and to this future. near the platform and to through is tap hope be to content marketing

Yes.

as infrastructure significantly seen, big has a quite country. addition, developed is China many very have areas we In been China's and into penetrating

lockdown newly leading during team So are different the and the and attractions, attractions. great but visiting and many James potential the most developed been to provinces famous there not our have our I period, other also many, customers, only

taking opens. So the when vacation, And the for think, further us local to we share. share also lastly, very attractions be prepared represents cross-border market new I are transaction gain opportunities to market

during or this related think opportunity opportunities the industry is depressed job almost pandemic. travel great being a this I every country

drive the So for there demand search to this area. into is a us the of volume

bring Chinese sure cross-border we'll working once are closely we the these be the well-prepared is vaccine take to players adopted, with global in make into the customers very to place, places the So once areas. very the transaction

you. Thank

you. Thank

from Please Citigroup. comes go ahead. next Brian from Gong Your question

management my thanks questions. Yes, taking for

is the question margins. my So regarding

reflected intelligently a saving of, our secondary in in low cost measures [ph] lot financials. to done have also which in we So

growth travel thank recovery So is, margin domestic our level? to under in assume international that my say if question auto bond operating would and XXXX. Yes, or and compared you. decent of be travel, What scenario XXXX we full on a pre-COVID-XX the

some margins volatilities COVID, resumed we Yes, of normal. are if is general, there think margin, we, but to achievable GAAP non to targeting operating Thank you. which XX% although the we the very XX%, the in in everything due at still

you. Thank

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would Michelle T.H. That Hou Senior Your disconnected. from from next like time conclude questions. has the comes Apologies. I to Director, Please our Capital. does question conference question back Tian for That now to hand Qi. ahead. go

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you. conference Michelle Qi. Senior That like to Thank the back would does conclude now questions. for Okay. Director, our I to time Thank hand you.

Thanks everyone you. for Thank us joining today.

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